Bitcoin Drops Below $100K as Market Sentiment Weakens. Source: Image by Kaifixed from Pixabay

Bitcoin slid deeper into correction territory on Thursday, breaking below the critical $100,000 mark and touching $96,600 during early Asian trading. The decline marks Bitcoin’s lowest level since May and comes amid a renewed wave of risk-off sentiment across global markets. A sharp pullback in major U.S. tech stocks and waning conviction from institutional investors added pressure to the broader crypto market.

Most major cryptocurrencies followed Bitcoin’s downward trajectory. Ether slipped to around $3,182, extending its weekly loss to 12%. XRP traded near $2.25 after an 8.8% weekly decline, while BNB fell to roughly $932, down 7.8% over the same period. Solana was hit particularly hard, tumbling to about $140 following a steep 16.5% weekly drop. DOGE hovered near $0.161, Cardano traded close to $0.491, and TRX held relatively steady around $0.292 despite the broader downturn.

Market structure has weakened noticeably, with ETF inflows slowing for a second straight week and long-term holders accelerating their selling. Retail participation remains muted, reinforcing concerns of a deeper bear-phase shift. Research firm 10x noted that the combination of slowing institutional support, reduced corporate activity, and weaker ETF issuance confirms a transition into bearish territory.

From a technical standpoint, Bitcoin’s failure to hold the mid-range level of $100,266 has exposed a thinner liquidity zone. Analysts now point to near-term support between $93,000 and $95,000. A breakdown below this range could trigger a test of the $89,600 liquidity gap. Any rebound may face stiff resistance at $100,200 and again at $107,300, a level Bitcoin has struggled to reclaim in recent weeks.

Analysts such as Nick Ruck of LVRG Research say stability near $92,000 may depend on next week’s FOMC minutes and potential hints of dovish sentiment. ETF outflows, a looming death-cross pattern, and uncertainty following the recent U.S. government shutdown continue to cloud market momentum.

Bitcoin has now erased the 30% rally it saw earlier this year, retracing sharply from its Oct. 6 record high of $126,251. That surge, driven by optimism around pro-crypto policy under the Trump administration, quickly faded after surprising tariff comments sparked a global risk reset. Bitcoin briefly dipped under $93,700 over the weekend before recovering to around $94,800 on Monday, though volatility remains elevated.